Hindustan Zinc reported a record Q2 FY27 performance with a 142% surge in net profit to ₹6,412 crore. Revenue climbed 77% YoY to ₹15,093 crore, driven by strong operational output. The company significantly lowered its full-year zinc cost of production guidance to $825–$850 per ton, signaling improved efficiency and better byproduct realization despite global market volatility.
Hindustan Zinc Q2 Profit Soars 142% on Record Output
Revenue rose 77% to INR 15,093 crore; Net profit reached INR 6,412 crore.
Reader Takeaway: Record production and lower cost guidance boost outlook, though global geopolitical volatility remains a key external pressure point.
What just happened
Hindustan Zinc delivered its strongest quarterly results to date for Q2 FY27. The company saw a 77% surge in revenue and a 142% jump in net profit compared to the previous year. EBITDA margins remained robust at 62%, supported by operational leverage and cost management strategies.
Why this matters
The most significant takeaway for investors is the reduction in cost of production (COP) guidance. Hindustan Zinc lowered its full-year target to $825–$850 per ton from the previous $975–$1,000 range. This revision reflects improved operational efficiency and higher income from silver as a byproduct.
Operational Highlights
Production metrics hit record highs, with mined metal up 5% and refined metal up 7% year-on-year. Saleable silver production grew by 20% to reach 173 tons during the quarter. The company continues to advance its 250 KTPA integrated zinc expansion, with engineering and procurement now nearing completion.
Balance Sheet and Cash Flow
The company remains in a strong liquid position, closing the quarter with a net cash balance of INR 11,268 crore. Free cash flow before growth capital expenditure stood at INR 6,389 crore, providing ample support for the ongoing INR 5,000 crore total annual capex program.
Risks to watch
Management highlighted that geopolitical tensions and trade disruptions continue to influence commodity markets. Furthermore, while the overall cost environment has improved, specific escalations tied to global logistical pressures are impacting the bottom line by approximately $50 per ton.
What to track next
Investors should monitor the status of the 250 KTPA expansion project and the company’s ability to maintain its silver production targets of 680 tons for FY27. Additionally, fluctuations in global zinc prices will remain the primary driver for future top-line growth.